>> get the man on facebook. melissa: that's all the "money" we have. be sure to tune in tomorrow. postmaster general on on how to get that -- keep the post office open. "the willis report" is next. gerri: tonight the economy takes center stage as mitt romney and barack obama face the states. they are here for our debate warm-up. is from the getting more specific about the tax plan? we think so. we have the details. welcome to "the willis report." hello, everybody. i'm gerri willis. tonight is the night. obama versus romney.

this same stage. the expectations are sky-high. it seems like all obama had to do is show up. with more on this neil cavuto from denver. can romney meet these expectations? >> they are high expectations. the pressure is on him because of these polls. i often think that a lot is put on the challenger. sometimes he can benefit by showing up and sharing the stage with the president of the united states. already on equal footing with him in that respect. he does have the advantage of a dicey economy going forward. the president's supporters say it is not as it had been, and there is some economic news today that portends may be the worst is behind it. but i agree with that. if you want to be in game changer this is the night. and no one doubts the earlier

point. he has the smarts. does he have the passion to deliver? the fact that he tipped his hand a little bit on his own tax-cut plan and how he wants to broaden the tax base and make sure that the rich don't get away with anything seems to be his effort to assuage leary middle-class voters, some of whom might have been tipped off by the end of this 47 percent, at. tried tech carry fu undecideds. more than just an elitist candidate. this is his night to put away what he says are misperceptions. gerri: it also brings to mind a question of which obama will show up tonight. the combative president a candidate or will he be the guy who sounds reasonable. what are you expecting? >> i always think the pressure is more on the president because the expectations are he is president. he cannot be nervous because he

has done this for so long. he has the advantage of the power behind him. the romney people tell me, we think we can get under this guy's skin. when you criticize him he takes great offense. easily perturbed. and they hope to get under that because in a way they want to take advantage of the fact that mitt romney had that debate to get ready for this call just to get the republican nomination. this president, largely on challenge and we know from this experience that first debate in particular was very unnerving to president bush when the guy was getting in his face and not necessarily being differential. that is a tough issue for presidents to have to face the challenger. >> he handles it pretty well. gerri: we will see. i think he gets easily take off,

and that might or might not help. something is going to rattle the other guy. his response to the other guy's charges, you know, silly guys like me will be talking about it. we will see. it's still early. gerri: let me tell you. your coverage of the conventions was fantastic. my expectations were higher than they are for mitt romney. we're going to talk to the co-founder of home depot. >> sarah palin will be joining us. as you know, and you have been championing -- champ in in this like nobody's business. he wants to make it front and center in the debate tonight. indications are that it will be. that should suit him just well. now we will see whether the answers. and alan simpson, as you know, tends to be a bipartisan basilar if they don't answer those

questions. gerri: it's going to be fun. i'll be watching. good luck. drink a lot of coffee. >> exactly. gerri: thank you. well, as president obama and mitt romney square off tonight they will do so under a strict set of rules. these guidelines have been established by the commission on presidential debates. that is a real thing. here is the format. six, 15-minute segments. the first three and the economy followed by health care and the role of government. the moderator from pbs will ask president obama the first question and then candidates will alternate for all 90 minutes. for each question the candidates will have two minutes to respond and are not permitted to talk to each other. much more on the debate when i'm joined by one of the smartest political minds and politics, call growth. you don't want to miss that. all right. both candidates will be trying to win over undecided middle-class voters, and the big concern, who has the better tax plan.

romney floating a new idea. today at of the debate which includes a cap on itemized deductions. for more on this on joined by scott hodge, president of the tax foundation. welcome to the show. i have listened to the radio interview, and i'm having a hard time making sense of this. the basics of this plan, and this is finessing a plan that is already out in the marketplace. he would cap itemize deductions at $17,000. taxpayers would choose which deduction to claim, which still lose. now, kendis work? do you think it is a good idea? >> well, i am a tax purists. i think it is a little bit to try to rein in tax deductions. but sort of like a budget freeze where friezes good programs and bad programs at the same time but has a political advantage ot having to tackle the big interest groups that the fan all those things like the real letters and all the other

special interests that are behind the deductions. it allows individuals to choose which of the various deductions they want to take. it is rather crude and sets that hard cap of $17,000. the advantages whether romney campaign, they get to say it will hit the rich the most because their the guys that get the big tax deductions. the average tax deduction for someone earning over $10 million a year is over $4 million, so you can imagine. gerri: that does not go a long way. >> no, it sure doesn't. gerri: well, you have broken it down a little bit for us. obama's deputy campaign manager saying romney never explained how he would pay for his massive new tax cuts for the wealthy. we hear the president hitting home time and time and time again. he keeps saying that romney wants to up raise taxes on the middle-class. it seems to me that that is just ignoring the facts. what do you say? >> it is based on a phony study

by the tax policy center at the brookings institution that really made up their assumptions of what that romney plan is. we look at this from a more dynamic effect and see that the romney plan would actually increase economic growth and increase wages across the board which is going to more than offset any sort of reductions that people would see or increases people might see in their taxes. by and large people get a tax cut because after all these cutting tax rates across the board by 20 percent, and the biggest thing that will benefit the economy is also cutting the corporate tax rate. as you know, we have the highest corporate tax rate in the world. all these things add up to larger economic growth which benefits everyone, even though he will be reducing the tax deductions on the other side of the ledger. gerri: thank you for coming on. appreciate your time and wish we had more of it. i am sure will have you back on sen. thank you. right now we want to know what you think. here is our question.

would you give up the mortgage tax deduction for a lower tax rate? log on to gerriwillis.com, vote on the right hand side of the screen and all share the results of the end of tonight's show. coming up later, you will not want to miss this. joins us with his preview of tonight's debate and there will be a huge windfall for the government but a hit to your pocketbook. find out how much more un nearly every other american will be paying uncle sam if we drive over the fiscal cliff in january. nearly 1 billion people around the world

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and together, we can move people why they're always there to talk. i love you, james. don't you love me? i'm a robot. i know. i know you're a robot! but there's more in you than just circuits and wires! uhhh. (cries) a machine can't give you what a person can. that's why ally has knowledgeable people there for you, night and day. ally bank. your money needs an ally. gerri: certainly one of the biggest issues the candidates will likely address, the looming fiscal cliff and the new report out from the tax policy center the says tax increases could adversely affect its centers to

work and save and would encourage taxpayers to claim more deductions and exemptions. joining me now, former cbo director donald marron, now the director of the tax policy center and author of the report i just talked about. welcome back to the show. it's great to see you. it's going to be interesting to see how these to attack this topic, which undoubtedly will be part of the conversation. what are you expecting? >> you know, i'm not sure. we are in this unusual circumstance where we have a tax cut that is riddled with uncertainty, lots of things expire at the end of the year. taxes will go up by about half a trillion dollars. i certainly hope the moderator asked them what their plan is for dealing with that. gerri: let's go through some of the details because i don't think people really recognize the degree to which their tax life is going to completely change. here is what the fiscal cliff means. expiration of a temporary cut in social security taxes, expiration of the 2001 and three

tax cuts and expiration of the amt patch. here is the bottom line, which i think people have no idea what's coming. this is from you guys, your analysis. average marginal tax rate, and we will look at a variety of things, wages and salaries rising 5%. interest income 5% higher. long-term capital gains 7% higher. qualified dividend, 20 percent higher. so at the end of the day what is the point of putting money away, investing in the stock market, even working? >> well, i mean, all of those things will still give you a return. you still get to keep most of your money, so don't give up borking are investing. gerri: a disincentive. >> and people will respond to those. if they believe it is going to happen. gerri: do you? >> i think congress will step in eventually. i'm not sure whether it is in

december or january of february to prevent a lot of these changes are happening. but certainly some of them well. the payroll tax that is going away and that americans should prepare for that. gerri: some many different taxes and impacts. all of the people should be doing planning right now, just in case. but what do you think of a broader impacts of this? i think your report is excellent on the idea that it will impact people on how they save and invest in what they do, but couldn't it have a broader economic impact? >> certainly if congress does nothing about it one would expect there would be a pretty significant macro economic shock sometime next year. the cbo has suggested we may fall back into recession if the entire place is allowed. again, you know, the way washington works these days is, you need to threaten it with something bad happening. a government shut down or a government default or in this case a potential recession. eventually policymakers will respond to that. i don't think that will happen,

but obviously it's a concern. gerri: thank you for coming down today, and a great report. appreciate your time. >> thanks. gerri: we will be right back. as we count down to tonight's debate. stay with us. ♪

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of shared information... ♪ into a fifth anniversary of remission? ♪ whatever your business challenge, dell has the technology and services to help you solve it. gerri: an explosive video of obama making waves. best-selling author breaks it down for us next.

gerri: looming over the debate. the two dozen seven controversial video of then president to candidate obama implying racism played a part in the reconstruction efforts in new orleans in post katrina. joining me now, ann coulter.

welcome. it's great to have you here. i can't think of a better date. we will get to racial demagoguery. i want to start with this debate and what you are expecting. >> i am expecting the reaction of most people is going to be that was really boring. anticipating this. everyone is so excited. we are two professional politicians. >> , nothing at all. let's talk about this video. it is controversial video release last night. obama speaking as a candidate five years ago to a room full of black ministers. here's what he had to say. >> what's happening down in your list? where is your dollar? where is your stafford act

money? it makes no sense. it tells me that somehow the people down in norman's don't care about as much. gerri: so the candidates saying the federal government does not care about black people as much as they care about white people. >> and he's lying about the figures, even as sitting senator. he should have known that $100 billion has been sent to the katrina victims six months earlier. that was five times more than new york got in disaster relief after tom sullivan, but this is exactly the point of my book. we were almost passed the racial turmoil and demagoguery of the 70's and 80's. the real civil rights battles were over, and then obama brings it all back. gerri: maybe i'm just my youth, but i really believe that having obama as president, as a black american would bring us together, would make things better, would help us feel this issue, moved beyond it, but it has only gotten worse.

>> that is why my book is for you because a lot of americans thought that. more white americans voted for obama in 2008 and had voted for any democrat for president in nearly 40 years. obviously a lot of people and that hope. i think seeing him do it himself is what is so arresting about this video, but usually it is being pushed by white liberals. if you don't go for obama america is racist. that statement by romney. and they do it -- they don't care about the historic nature. otherwise they would have been supporting clarence thomas' nomination to the supreme court. they like him because he is the most left-wing president we have ever had, and they can defend his liberal policies by calling his opponents and critics racist >> i want to read the response to this video. they're calling it a desperate. in a transparent attempt to change the subject, his allies recirculated video of the 2007

event. the romney campaign believe that americans would accept the desperate attacks. it is they who are in for a surprise. your response? >> i love how the media, if this was available before, we never saw it. according to tucker carlson, the transcripts of the prepared remarks, but the really shocking statements were obama telling an audience of black patrons that america does not like black people. that is when the obama departed from his prepared remarks. according to the person who has the video this has not been seen before. if the media had seen this, how come i haven't. why haven't shown its list? they bury something. gerri: your book has created more controversy than anything i have seen in a long time. i have a theory about this. this is a story about black people. blacks are just props to dress

up the left, and this is the thing that i think the people of gotten. >> it's not black people saying i hate this book. its people on the left to are saying you are insulting it because you say we are manipulating people. i have exposed their stamp. we will read about a lot of black heroes and my book that liberals have been hiding from you because they want to celebrate the black cop killers, the gangster rappers. now tell you about the ones who testified against the cop killers and to save people in the middle of the l.a. riots. a lot of very heroic blacks. white liberals. this is a scandal have been pulling. gerri: do you think that we will ever get past this issue? it still seems to be the one issue that nobody wants to talk about. >> i think this sounds silly, but if people read my book that really will help move the country pass it because the one thing, at least half the country, the republican party

has nothing to be embarrassed about in terms of race relations . liberal democrats then, liberal democrats now, and the way to move past racial animosity and resentment is to move past it. it is not to stir them up. gerri: as we have been doing. ann coulter, thank you for coming out tonight. still to come, the candid it's focused on the economy, will obamacare make a return appearance to the forefront? and spent months talking about each other. tonight there will be talking to each other. political guru, this is a preview of the big event coming up next. [ male announcer ] wouldn't it be nice if there was an easier,

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takes the stage he has to explain why the jobless rate rose above 8 percent over three years. will be blamed the previous and ministrations? let's ask karl rove and fox news contributor. great to see you. tell me your expectations. >> we have seen what we have seen before. the men are well prepared, it it will be umbro tested mitt romney will say 8.1% and the president will say 30 months of job growth. obama's construct will be inherited problem and with the policies in place need another four years. gerri: the backdrop is the

2007 video of candidate obama talking to black preacher saying essentially the federal government does not care about black americans. >> he has his facts wrong. president bush waived the stanford act 60 months for e emergency removal. $150 billion of katrina assistance. 20 billion on housing mississippi and the mexia had no real import -- reimbursement. from the state. to pockets that had the money had to be reimbursed. 19 million in construction for levies and 12 billion in reimbursement for public facilities.

$31 million total. the requirements the state of mississippi and louisiana reimbursed 10 percent, not the city of new orleans. they had a $1 billion per year superstation surplus. normally that would collapse the finances so the government said put up your match for the levees but instead you could pay it over 30 years. he misstated the facts deliberately to say they were put upon. it was not the city but the state of louisiana. and forgiven 16 months of the fees that were waived picked up by the federal government. gerri: what about these

comments? speaking to people who were on your side. that was the candidates frame of mind. did he go to far? >> absolutely. saying the bush should ministrations is bigoted. shame on him to be so racially divisive trying to get votes. what happened to the man who said he would bring us together who blames the predecessor as a racial bigot? >> vice president joe biden had comments. >> this is a deadly. how they can justify raising taxes with the middle-class over the last four years.

[laughter] gerri: i could hardly believe he said that. >> the gift that keeps on giving. it is apparent to simply repeat the charge romney will raise taxes is ridiculous. i have to agree. american people are buried under a mountain of debt and buried under the longest stretch of high eight unemployment in a recovery the most anemic since world war ii for the first time ever median household income has dropped. by a bigger number and the administration itself. they are retarding the american debt to and stopping our growth.

gerri: but the g.o.p. commentators have been voting on the romney campaign with advice and criticism. clinton says his comments were arrogant and stupid. do you think the advice will register to change the campaign? >> i have tried to be measured in side -- my comments by have been inside to presidential campaigns. look at my op-ed tomorrow. over the last month there have been nine the polls obama is that 50% in only 20. the average number is 47 mitt romney is 47. the media says the race is over.

eight years ago at the same time thereafter 30 polls bush was at or above 50% john kerry was five points behind in "the new york times" said it is too close to call. he is at or above the number half the time and two and a half times as much this is the blowout? no. it is a close race. obama's problem he cannot get 50% the number on the election day is likely to be less than your final number because your detractors will vote against you. gerri: it is about the spin. thank you for coming.

enjoy the debate. pundits and politicos debates of the long run but they cannot blasted the memorable moments. number 51992. vice presidential showdown with james stock dale. >> admiral stock dale? >> who am i? why am i here? [laughter] [applause] gerri: that moment lead to ridicule and the saturday night live skit he only decided to participate one week prior and did ask the moderator to repeat the question. number four. out course. >> i get something positive done on behalf of the people. that is the question not

your philosophy your position but can you get things done? [laughter] i believe that i can. gerri: remember that moment? and he made in seem condescending with his citing. >> these of the elements of the national health insurance. governor reagan is such a proposal. there you go again. gerri: this became one of ronald reagan's most famous lines came to him on the spot. another 14 years later he would not make an issue of how long they shotgun walter mondale is. >> which point* to view to

rewind to lead the united states? >> i know what it means to be poor, see people unemployed. gerri: the first debate 1960 change the future of presidential elections not just the right answers but look the part. jfk did since nixon just got out of the hospital. number one. i have as much experience as jack kennedy did. >> i served with jack kennedy. he was a friend of mine. senator, you are no jack kennedy. [cheers and applause] gerri: the offer quoted exchange he much waited for kennedy name to come up. i will rehearse line.

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gerri: two hours and

counting until the presidential debate. the key issue is obamacare romney says he will repeal and replace his first day in office. florida attorney general pam bondi. you have been the most effective voice to call for the repeal. what do expect to hear? >> i want to hear obama explained a lot of things. i think he wants to dodd the issue. the overarching point* is so many things are not true. first, it is not a tax. now we know it is the largest tax increase. he said it would not raise taxes for the middle class.

wrong. also people could keep health-insurance. over 20 million americans could lose employer coverage as a result of obamacare. also he says it would not hurt medicare but they braided $716 billion to fund obamacare making it go bankrupt by 202047 it will be more interesting to hear mitt romney because he has been confusing if he is proud of romneycare and some comments have been confusing >> i have personally spent much time with matt -- mitt romney the first day in office he will begin the process to repeal and replace.

paul ryan is by his side. they have a plan not to hurt anyone 55 and over but as important to look out for the future generations. i have talked to governor romney on multiple occasions. gerri: i really think the conversation about obamacare and look at the polling is that net romney is leading. 47% vs. 43%. it did not start off that way. ball right and went to florida and was there with his mom. did that make the difference ? >> i think it did.

do we want a society free enterpriser based on government centered focus? that is the clear choice. 47 million americans are on food stamps. that is unacceptable. one out of six winning in poverty. that is what we have seen under obama. romney and ryan have the vision for our picture. gerri: when you drill down where florida is unemployment is above the national average. a foreclosure rates is one of the worst in the nation. what do these candidates need to say?

what is the most important issue? >> jobs and the economy. our governor tries to bring business with jobs and employing people but constantly fighting the federal government of overregulation. that has got to stop. romney will make a difference not only in our state but then the country. gerri: it is a pleasure. i will be watching the debate tonight. pam bondi. stocks are higher today with the new jobs report but is it something to be happy about? up review -- a preview of friday's report next.

gerri: the jobs market. the private sector hiring last month 160,000 jobs added. lower than the month before. here to break down is our harvard economist. jeffrey, this is a payroll processor the works of private businesses, what does it mean for the jobs report on friday? >> appms numbers are not always indicators it is a

pretty good report by it is not great consistent over months with the new normal we grow slowly so the unemployment rate does not come down even though people employed is going up not much faster. gerri: they say small business hiring 80,000, large companies 17,000. in expectation is 140,000 jobs added 8.2% jobs rate. are you on track with that? >> it seems reasonable. everything else is mixed with the gdp revision durable-goods orders number

and housing is better. with the economy limping along you always have mixed signals. it will not be great. >> what i have noticed is we get to the jobs report and the previous month is reprise higher. am not a conspiracy theorist but it does seem weird before the election. >> i don't see any way people could mess with the numbers. gerri: really? they do what all the time. putting trillions of dollars in debt to. >> those counting members members -- accounting numbers behind the closed door is a gimmick.

unemployment numbers cannot prove but my strong suspicion it is on the up and up. >> how we end this year? is that anemic? >> it is hard to predict. after we get past the election then we have a discussion if we let the tax increases go into effect british impossible to predict but it could be good or a disaster. gerri: doesn't higher taxes hurt hiring? >> the agreement might be good for i think they should let the expenditure cuts go

through. that spending is a waste of money. gerri: one more question quickly. bernanke says he will push the economy with the foot to all the way to the floor. >> it is a worse and worse idea. the ada we have a huge bubble with bond prices that will explode without much warning. thank you for coming. it is great to see you. we will be right back. would you give up the mortgage tax deduction for a lower tax rate? with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar trades are just the start.

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cap on the mortgage tax reduction in. what do think? eighty-one% say yes. 90% say no. log on at gerriwillis.com. >> president acts like a senior high school class president and commander in chief. the democrats' turn reality into fantasy. our country will have to crash around us before the adults fix the problem. mitt romney told the truth. more than americans relying on the uncle sam sugar daddy. what is wrong with stating the obvious? this president is not doing his job and wants to give away federal candy and makes the same